SpaceX buys Spectrum to transform Starlink Mobile into an operator

SpaceX announced two developments this week that further its goal of becoming a major U.S. carrier to compete with AT&T, Verizon and T-Mobile.

It is acquiring a portfolio of low-band spectrum licenses in the 800 MHz band, which it says addresses one of the “remaining technical gaps” that will allow it to compete with other operators. Most smartphones already support the 800 MHz band purchased by SpaceX.

The FCC has approved the Starlink Mobile Gen2 constellation application, allowing SpaceX to launch 15,000 satellites optimized for the 2 GHz spectrum worldwide. The company says Starlink Mobile satellites will “deliver more than 100 times the bandwidth” of the current generation. The FCC also granted SpaceX a waiver allowing the company to offer wireless services via its satellites without a spectrum lease agreement with a terrestrial carrier.

After receiving final approval from the FCC to purchase the new spectrum, SpaceX will combine its satellites with “advanced ground deployment” to connect devices anywhere. SpaceX says the 2GHz mid-band spectrum will provide high bandwidth capacity in the United States, while the new low-band spectrum will allow Starlink’s signal to penetrate through obstacles such as walls.

SpaceX plans to be the first network operator to deploy satellite and terrestrial spectrum. It claims it will offer a unique network with “reliable service indoors, outdoors, in cell dead zones and everywhere in between.”

SpaceX already runs T-Mobile’s satellite functionality, but T-Mobile recently removed the SpaceX brand from its website after finalizing a satellite joint venture with AT&T and Verizon. The announcement of SpaceX’s Starlink Mobile sent shares of AT&T, Verizon and T-Mobile tumbling, with Verizon experiencing its worst one-day drop since 2002.

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